India’s first virtual merger: RCom and RJio Join Hands

a. TATA

b. Birla

c. Godrej

d. Reliance

 

Reliance Communications (RCom) and Reliance Jio (RJio) are working together through a “virtual merger” of their infrastructure such as spectrum and towers and the two companies are reaping the synergies, according to RCom president Anil Ambani.

• “What we have accomplished is a virtual merger between Rcom and RJio. Our spectrum is shared, our network is shared, our towers are shared, our fibre shared, our voice is shared and every effort to reap synergies, every effort to lower our costs, to be capital light has been achieved,”- he said in an official statement.
• RCom has a full 4G LTE long term evolution network on a pan Indian basis without capital expenditure on the balance sheet
• Assets shared and traded with Rjio have ensured RCom does not shell out entire capital expenditure
• RCom is also unlikely to bid at the upcoming spectrum auction given that RJio has deposited Rs.6,500 crore as earnest money deposit,
• The proposed merger with Aircel will create wealth for shareholders
• RCom expects a deal soon for its tower business, he said.

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